The Santa Monica Planning Commission is exploring changes to the city's sign code that would give businesses more flexibility to display larger, higher signs as a potential economic development strategy, officials said during a recent study session.
The commission expressed broad interest in allowing upper-level signage for businesses, particularly those in single-occupancy buildings like hotels, as the city grapples with financial pressures and seeks new revenue opportunities.
"I want to find a way or I'm curious about ways that we can see this also as like an economics revitalization concept where businesses who do make investments in our city who do bring high quality retail are given some flexibility about signage," said Vice Chair Josh Hamilton during the July 2 meeting.
The discussion comes as Santa Monica faces what commissioners described as a "precarious financial position" and looks for ways to help businesses generate additional revenue while potentially creating new income streams for the city.
However, any changes must navigate complex First Amendment protections that significantly limit how cities can regulate signs, Deputy City Attorney Michelle Hugard explained to commissioners.
The city's current sign code is designed to be content-neutral, meaning it regulates the time, place and manner of sign display rather than the message itself. This approach allows the city to regulate signs based on substantial government interests like aesthetics and traffic safety, but limits the types of distinctions that can be made between different businesses.
The commission's interest was sparked partly by a recent case involving the Hilton hotel, which sought to place a sign higher on its building for better wayfinding but was denied under current regulations.
"They just wanted to allow for the sign that they were allowed at 20 ft to be higher up on the building to allow for better wayfinding for their guests as they are crossing Fourth Street or coming in from the freeway the 10 freeway and exiting," Hamilton said.
Planning staff suggested that geographic restrictions, such as proximity to freeways, could provide a content-neutral way to allow more flexibility for certain businesses.
The commission also discussed the city's broader approach to digital signage, particularly plans for the Third Street Promenade. The city council has directed staff to form a special sign district for the Third Street Promenade and Santa Monica Place as "the only geographic area where digital billboards could be considered through a development agreement process," according to Michelle Hugard.
Off-site advertising has been largely prohibited in Santa Monica since 1985, though some grandfathered billboards remain. The potential addition of digital billboards represents a significant policy shift that could generate revenue for both private property owners and the city.
Commissioner Landres raised concerns about light intensity and flashing lights, particularly regarding potential health impacts for people with epilepsy, even as the city considers expanding digital signage options.
The commission also clarified that the city's sign code applies to all property unless specifically exempted, with school districts and Santa Monica College exempt from city review because they are regulated by the state.
Commissioner Landres described the commission's position as "open but cautious" regarding potential changes to the sign code.
"I think the world is changing and we always have to be open to reevaluating," Landres said.
No formal action was taken during the study session, but staff indicated they would consider the commission's expressed interest in further exploring upper-level signage flexibility as part of their ongoing work on sign code revisions.